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Net farm income chart

 

Farm income is forecast to decline in 2014 but remain above previous 10-year averages

 

USDA, Economic Research Service

 

WASHINGTON — Net farm income is forecast at $113.2 billion in 2014, down about 14 percent from the 2013 forecast of $131.3 billion. If realized, the 2014 forecast would be the fourth-highest value since 1970 after adjusting for inflation.

 

Lower cash receipts for crops, and to a lesser degree, higher production expenses and reduced government farm payments, drive the expected drop in net farm income.

 

Net cash income is forecast at $123 billion, down almost 6 percent from the 2013 forecast. Net cash income is projected to decline less than net farm income primarily because it reflects the sale of more than $10 billion in carryover stocks from 2013.

 

Despite expected record-setting harvests, crop receipts are expected to decrease more than 7 percent in 2014 due to lower prices. Livestock receipts are forecast to increase by more than 15 percent in 2014, largely due to higher prices.